NATIONAL

AUTOMOTIVE

POLICY (NAP)

2020

OUTLINE

OF

NAP 2020

Background and Key Achievements of NAP 2014

National Automotive Vision

Malaysian Vehicle Project

Framework & Objectives of NAP 2020

New Elements in NAP 2020

Targets

CMV

Conclusion

2

BACKGROUND

AND KEY

ACHIEVEMENTS

OF NAP 2014

BACKGROUND OF NAP

POLICY DRIVEN VISION DRIVES POLICY

SUPPLY CHAIN INTEGRATION

INVESTMENTS PROMOTION

GREEN AND SUSTAINABILITY

CONNECTED MOBILITY

NAP 2006(2006-2009)

NAP 2009(2009-2014)

NAP 2014 (2014-2020)

NAP 2020(2020-2030)

ADOPTED POLICY REVIEWED FOCUSED ENHANCED

Introduced to transform the domestic automotive industry and integrating it into the increasingly competitive regional and global industry network.

Reviewed to enhance the capability and competitiveness of the domestic automotive industry.

Focused on developing Malaysia as the hub for Energy Efficient Vehicle (EEV)

Enhance Malaysia’s automotive industry in the era of digital industrial transformation.

4

KEY

ACHIEVEMENTS

OF NAP 2014

62% TIV EEV PENETRATION IN 2018 (FROM 14.1% IN 2014)

RM12.1 BIL COMPONENTS EXPORTED IN 2018 (FROM RM4.7 BILLION IN 2014)

405 VENDORS CAPABLE TO BE OEMS’ SUPPLIERS IN 2018 (FROM 277 IN 2014)• LEVEL 5: 55 COMPANIES• LEVEL 4: 130 COMPANIES• LEVEL 3: 405 COMPANIES

RM10.05 BIL OF TOTAL INVESTMENTS (2014 TO 2018)

RM58.7 BIL LOCAL CONTENTS USED (2014 TO 2018)

247,177 EMPLOYMENT IN AUTOMOTIVE INDUSTRY (2014 TO 2018)

RM2.08 BIL WORTH OF CBU VEHICLES (2018)

RM48.6 BIL WORTH OF GDP CONTRIBUTION (MANUFACTURING)) (2018)

564,971 UNITS OF TOTAL PRODUCTION VOLUME (TPV) (2018)

598,704 UNITS OF TOTAL INDUSTRY VOLUME (TIV) (2018)

RM523.1 MIL WORTH OF REMANUFACTURED AUTOMOTIVE PARTS AND COMPONENTS (2018)

ESTABLISHMENT OF TWO AUTOMOTIVE SPECIALIZED DESIGN ANDENGINEERING CENTERS (MALAYSIA TECHNOLOGY CENTRE AND NETC) (2014-2018)

5

NAP 2020

NATIONAL

AUTOMOTIVE

VISION

• To become a regional leader in manufacturing, engineering, technology and sustainable

development in the automotive sector

• The National Automotive Vision will support the establishment and development of

existing projects and Malaysian Vehicle Project7

NAP 2020:

NATIONAL AUTOMOTIVE VISION

0102

0304

05SUPPLY CHAIN

INTEGRATION

Malaysia as the hub for:

• Export of vehicles;

• Exports of components

and spare parts;

• Technology development

related to automotive and

mobility; and

• Vehicle and component

testing.

LOCAL

MANUFACTURING

Enhance local manufacturing

of vehicles and components

as well as promotion of

remanufacturing.

ENGINEERING

CAPABILITIES

Enhance local engineering

capabilities in R&D, testing

and technology

development.

LATEST

TECHNOLOGY

TREND

Adopt and adapt the latest

technology trend through

application of IR4.0

technologies.

SUSTAINABLE

DEVELOPMENT

Sustainable development of

the automotive industry

through application of

environmental friendly

products and processes

which aims to reduce carbon

emission etc.

MALAYSIAN

VEHICLE

PROJECT

MALAYSIAN VEHICLE PROJECT

MALAYSIAN

VEHICLE

PROJECT

9

Support for PROTON, PERODUA and MODENAS to be continued.

To develop the

ecosystem of NxGV

and Mobility in line

with IR4.0 to meet

NAP Expectation

Focus on local

talent employment

(at 98%)

Significant level of

R&D must be done

locally (top hat,

upper body, etc.)

except for platform

Local majority on

ownership

Private-sector

driven

Focusing on

domestic supply

chain development

(75% local and 25%

foreign vendors)

FRAMEWORK

AND

OBJECTIVES

OF NAP 2020

NAP 2020

1. National Roadmap for Automotive & Mobility Value

Chain (NRAMVC)

2. National Roadmap for Automotive & Mobility Technology

(NRAMT)

3. National Roadmap for Automotive & Mobility Talent

(NRAMTa)

4. National Roadmap for Automotive Aftermarket (NRAA)

5. National Blueprint for Automotive Mobility as a Service

(NBAMaaS)

6. National Blueprint for Automotive Robotics (NBAR)

7. National Blueprint for Automotive Internet of Things (IoT)

(NBAIoT)

NAP 2020 FRAMEWORK

11

THE FRAMEWORK OF THE NAP IS SUPPORTED BY

THE IMPLEMENTATION OF THESE DOCUMENTS:

NAP 2020

NAP 2020

OBJECTIVES

Develop NxGV technology ecosystem to make Malaysia the regional hub for NxGV production.

Expand automotive sector participation in MaaS sector.

Ensure local automotive industry is ready with new automotive paradigm closely related to IR4.0

development.

Ensure whole ecosystem benefits from the spin-off of NxGV implementation.

Reduce vehicle carbon emission by improving fuel economy level in Malaysia by 2025.

12

NEW

ELEMENTS IN

NAP 2020

NEXT

GENERATION

VEHICLE

(NxGV)

• NxGV - vehicle with EEV status and achieve at least Level 3 Automation (Conditional Automation).

• Development of standards by 2021 to ensure market penetration by 2025.

5 LEVELS OF VEHICLE AUTONOMY

14

RAHSIA\

Source: Society of Automotive Engineer - SAE J3016

NEXT

GENERATION

VEHICLE

(NxGV)

STANDARDS TO BE DEVELOPED FOR NxGV

15

•Establishment of

AACV in

specifying its

safety

requirements for

AACV testbed.

• Covering few

vehicle categories

in Malaysia with

regards to the

intelligent mobility

and automation

level features.

Autonomous,

Automated And

Connected

Vehicles (AACV)

Development

•EV Charging

protocol

•Energy

management

system for EV

ecosystem

• Safety usage of

the critical

components

Electric Vehicle

Interoperability

Centre (EVIC)

Energy Efficient

Vehicle (EEV)

and Next

Generation

Vehicles (NxGV)

specifications

• Revise

definition of EEV

and NxGV for

wider scope – all

vehicle category

i) Passenger

Vehicle

ii) Commercial

Vehicle

iii) Motorcycle

MOBILITY AS A SERVICE (MaaS)

MaaS - concept of integrating various types of transport services to centralized mobility services.

16

INDUSTRIAL

REVOLUTION

4.0

(IR 4.0)

Use of IR 4.0-related technology applications especially AI, Big Data Analytics (BDA) and IoT will enable the implementation of NxGV and MaaS.

ENABLINGTECHNOLOGIES

The digitalization of the production -based industries are driven by these

technological drivers

TECHNOLOGIES ADVANCEMENT

AND CONVERGENCE

INDUSTRIALREVOLUTION 4.0 (IR4.0)

1. BIOTECHNOLOGY2. NANOTECHNOLOGY3. QUANTUM

COMPUTING 4. GOVERNANCE5. ETC.

17

TARGET OF

NAP 2020

19

10% RM 104.2 BIL 250,000 UNITS RM 12.3 BIL

1.35 MIL UNITS

1.47 MIL UNITS

1.0 MIL UNITS 1.22 MIL UNITS RM 2 BIL RM 10 BIL

RM 28.3 BIL

RM 10 BIL

NAP 2020

TARGET (BY 2030)

NAP 2020

TARGET (BY

2030)

NAP 2020

TARGET (BY

2030)

NAP 2020

TARGET

(BY 2030)

NAP 2020

TARGET

(BY 2030)

NAP 2020

TARGET

(BY 2030)

20

87, 520 JOBS128, 000 JOBS 177, 520 JOBS

323, 000 JOBS

80, 000 JOBS

46, 000 JOBS

N/A75, 000 JOBS N/A

44, 000 JOBS

N/A

NAP 2020 TARGET

(BY 2030)NAP 2020

TARGET (BY

2030)

NAP 2020

TARGET (BY

2030)

NAP 2020

TARGET (BY

2030)

NAP 2020 TARGET

(BY 2030)NAP 2020

TARGET (BY

2030)

30, 000 JOBS

Establish two automotive

specialized design and

engineering centers

Establishment of a full-fledged Vehicle

Type Approval (VTA) Testing Centre

Establishment of Vehicle User Solution

Malaysia as the preferred destination (for

investment, research, technology adoption

and human capital development) in areas

related to Green Powertrain Technology,

Advanced Automotive Manufacturing and

Low carbon manufacturing process.

21

N/A

TOTAL – 1, 285 SUPPLIERS

TIER 1 – 400 SUPPLERS

TIER 2 & BELOW – 885 SUPPLIERS

N/A350 ROBOTICS CO.

380 IoT CO.

LVL 5 – 180 CO.

LVL 4 – 330 CO.

LVL 3 – 430 CO.

LVL 5 – 360 CO.

LVL 4 – 660 CO.

LVL 3 – 880 CO.

N/ALEADER – 280 CO.

EXPERIENCED – 500 CO.

LEARNER 660 CO.

Establishment of VTA Testing Centre;

Establishment of Electric Vehicle Interoperability

Centre (EVIC);

Establishment of NxGV Test Bed;

Establishment of Virtual Design Centre;

Establishment of Additive Manufacturing Design

Centre;

Establishment of Robotics & AI Centre;

Establishment of BDA Centre;

Establishment of Digital Twin Centre; and

Establishment of Technology Academy

(Automotive & Overall Mobility).

NAP 2020

TARGET (BY

2030)

NAP 2020

TARGET (BY 2030)

NAP 2020

TARGET (BY 2030)

NAP 2020

TARGET (BY 2030)

NAP 2020

TARGET (BY 2030)

MONITORING

AND

REPORTING

1. Develop and monitor the localautomotive industry will continue tobe led by MITI as the custodian of NAP.

2. Monitoring and reporting of NAP 2020implementation will continue via theMalaysian Automotive Council withYBM MITI as the Chairman andappointed members from Governmentand industry players.

22

Data mining, analysis & analytics

CMV

MA

RII

MA

NU

FA

CT

UR

ING

INN

OV

AT

ION

CE

NT

RE

(MM

IC)

MA

RII

MA

NU

FA

CT

UR

ING

INN

OV

AT

ION

CE

NT

RE

(MM

IC)

Mobility

As A Service (MaaS)

Next Generation

Vehicle (NXGV)

Industrial Revolution (IR) 4.0 including Artificial Intelligence (AI)

NAP 2020

AI Protocol

Digitalization of AfterMarket &

ServicesRegulatory

Framework on

Connectivity

OUTCOME

ENABLERS

Automotive Sustainable Development Incentives

LFB Manufacturing

Biofuel Roadmap -MPIC

EV Interoperability Centre

Big Data Analytics

Cloud Computing

Cybersecurity

Internet of Things

Additive Manufacturing

Drone/UAVConnectivity Technology

Energy Storage Management

Smart City

Intelligent Factory

Augmented Reality (AR)

Simulation

Autonomous RobotSystem Integrator

Intelligent Transportation System

(ITS) & Telematics

NxGV Testbed

Exhaust Emission Lab

I n t e l l e c t u a l P r o p e r t y

L e g a l & R e g u l a t o r y F r a m e w o r k

P h y s I c a l I n f r a s t r u c t u r e

CONNECTED MOBILITY VISION

CURRENT FACILITIES

CONNECTED MOBILITY GENERAL ECOSYSTEM

NxGV will be commucating with the whole ecosystem to further improve

it’s operation which include sensing, cognition, decision and action.

NxGV: Definition

In the NAP 2020, EEV technology will be further enhanced towards NxGV which is

defined as Energy Efficient Vehicle (EEV) powertrain and meet at least Level 3 of

Automated, Autonomous and Connected Vehicle (AACV)*

What does the human in

the driver’s seat have to

do?

What do

these features do?

Example

features

LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5

You are driving whenever these driver support

features are engaged – even if your feet are off the pedals and you are not steering

You must constantly supervise these support

features; you must steer, brake, or accelerate as needed to maintain safety

You are not driving when these automated driving

features are engaged – even if you are seated in ―the driver‘s seat‖

When the feature requests,

These are driver support features

These features are limited to providing warnings and momentary assistance

• Automatic

emergency braking

• Blind spot warning

• Lane departure warning

These features provide

steering ORbrake/

acceleration support to the driver

• Lane

centering

OR • Adaptive

cruise control

These features provide

steering ANDbrake/

acceleration support to the driver

• Lane

centering

AND • Adaptive

cruise control at the same time

These features can drive the vehicle under limited conditions and will not operate unless all required conditions are met

• Traffic jam chauffeur

• Local driverless taxi

• Pedals/ steering wheel may or may not be installed

• Same as L4, but feature can drive everywhere in all conditions

You must drive

These automated driving features will not require you to take over driving

This feature can drive the vehicle under all conditions

These are automated driving features

Handover

L3: AACV feature will request handover

L4/5: AACV feature will

not request handover

Operation Condition

L3/L4: Preset condition will define

operation.

L5: Unconditional

operating parameters

(geography/use case)

Vehicle Hardware

L4/5: Both can have steering wheel/brake

L4: Can be

controlled by

teleoperation.

1

2

3

LEVEL 1

* To be developed as Malaysian

Standards

Future Sensor

Fusion Solutions

Vehicles will need to

collate various sensor

data to get a complete

picture of the

surrounding, leading

to sensor fusion

Data Storage and

Computing

Data size,

connectivity, and

latency will influence

the adoption of

computing platform

Future

Autonomous

Vehicle Platform

Future vehicle platforms

will be designed to scale

and adopt to L4/L5 AACV

Testing and

Validation

Scenario-based

testing and validation

is considered over

conventional driven

miles methods

NxGV : Key Technology Development

28

NxGV

Implementation

Timeline

Immediate Next-generation focus Future focus

Chassis

Platform

Modifying existing platforms to add redundancies

Dedicated mounting points for mechanical and electrical redundancies for AACV applications (L3)

Fully flexible and scalable platform capable of enabling all levels of AACV (L1–L5)

Services

L2 /L2+/L3 applications for ownership (highway assist, auto lane change, valet parking)

• L3 (auto highway assist, chauffer/summon, and so on)

• L3 for usership (city pilot, chauffer/summon, geolocalized shuttles, and taxis)

Software

Platform

Deterministic s/w clusters for each ADAS

application

AI for core AACV software [Object Classification, path planning] + deterministic

s/w for time critical computing

Driver health and wellbeing – fitness tracking and emergency services

HardwarePlatform

Multiple redundancy and application-specific sensors (Radar, camera, LiDAR, and so on)

Sensor fusion for all ADAS/AACV applications and cross-redundancy between sensors (LiDAR + camera localization, radar + camera annotation, and so on)

Smart sensors and data fusion for low latency and all weather sensing

E/E

Platform

Individual ECUs per applications and multiple protocols (CAN, LIN,

Flexray, Ethernet)

ECU (ADAS ECU, Infotainment ECU) and protocol (CAN FD, Ethernet) consolidation

Centralized and decentralized E/E architecture (domain controllers and smart sensors)

Cloud

Platform

Data storage and annotation

Time uncritical data processing (predictive sensing, V2I, V2P) Data convergence from in-vehicle and mapping

application

Convergence of vehicle/map

and service

data

2027 2025 2030 2020

• L4 R&D activities

29

MALAYSIA AS NxGV TECHNOLOGY FRONTIER

All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permisMARii.

CONCLUSION

1. Formulated to continue the developmentof local automotive industry and itsoverall ecosystem.

2. To ensure the realisation of the NationalAutomotive Vision.

3. Introduction of new elements intechnology are crucial in ensuring thelocal automotive industry continues togrow and remain competitive.

4. Create new opportunities not onlyfocusing on the automotive sector butalso the services sector.

30